Arbitration is settlement of a
dispute by the decision not of a regular and ordinary court of law but of one
or more persons who are called arbitrators.
Natural person who resolves the
dispute between parties specially by means of formal arbitration. Umpire is an impartial person
appointed to make an award usually when arbitrator has failed to agree. The court of law has power to
appoint arbitrator under following heads.
i- Power to appoint u/s 8
ii- Power to appoint u/s 12
iii- Power to appoint u/s 20(4)
Appointment u/s 8 is initial as
well as subsequent
i- Initial appointment
ii- Subsequent appointment
Initially an arbitrator shall be appointed
with the consent of parties. There must be a valid arbitration agreement for
initial appointment. Where initially appointed
arbitrator neglects, refuses or becomes incapable to act or dies, a subsequent arbitrator
shall be appointed. One of the parties to agreement
shall serve a notice to another for appointment of arbitrator. The other party to the agreement
fails to appoint within 15 days of the service of notice.
. Party who served the notice must
apply to the court for the appointment of arbitrator. The court shall hear the both side
till its satisfaction. If all the requirements have been
fulfilled and the court is satisfied, the new arbitrator shall be appointed by
court. Arbitrator u/s 12 can only be
appointed where the first arbitrator is removed or his authority has been
revoked.
Appointment u/s 12 is
always subsequent. Where the arbitrator is appointed with
the common consent of the parties and parties fail to appoint or arbitrator
fails to act, the court shall appoint a subsequent arbitrator. An umpire is appointed by the court
where the arbitrator appointed u/s 8, 12 and 20(4) have been failed to agree
.i- Arbitrator cab be appointed by
the arbitration agreement
ii- Umpire cannot be appointed by
arbitration agreement
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